How to get a Continuous Customs Bond to Import Goods?
If you are a frequent importer in United States, this article is for you. A customs bonds (301 customs bond) is like an insurance paper that is mandatory for shipping in US. It is a surety bond between custom and importer that guarantee some specific obligations to be fulfilled. If an importer fails to pay taxes, fees, penalties and fines, customs bond aid government (CBP) to recover this money and identifying the defaulter. CBP Form 301 is required to be filled to obtain a continuous import bond or customs surety bond.
There are two types of customs bonds CA allocated by U.S. Customs and Border Protection (CBP). First one is single entry customs bond and another is continuous custom bond or continuous transaction bonds. The single entry custom bond allows you to import once in a year. On the other side, continuous transaction bond is a bond that will cover all shipments imported within one year.
What is Single Entry Bonds?
As you read earlier, a Single Entry Bonds is another option to obtain for only shipment in a year. It is affordable as well as easy to possess. A carrier with its commercial value excess 2,500 is allowed by CBP to go with single entry customs bonds. You can get it by filling customs form CF 301.
What is a Continuous Transaction Bonds?
Importer and vessel carriers who do more than one shipment in a year are allowed to acquire a continuous transaction bonds/continuous customs bond/301 customs bond. There is a common continuous bond of $50,000 amount in US. Basically continuous bond is 10% fees paid for 12 months. Shippers can use this bond for all the imports during one year of period. The benefit of continuous transaction bonds is, it automatically renewed/reissued after a year.
Get Continuous Custom Bond
A continuous custom bond/continuous transaction bonds can be acquired from a custom broker who is licensed and certified by U.S. Department of the Treasury. They are well familiar with CBP Form 301. Customs brokerage sometimes charges more than required. So make sure to visit an experienced custom bond consultant company which had already done work for other importers/exporters in past.
Choosing the Right Freight Forwarders for Customs Bonds CA
You can't opt for any contractor to deal with the pros and your imports. As a matter of fact, your freight forwarder should know how to look after your shipping. For those who don't have any idea about how to pick a professional that is great for obtaining customs bonds CA, you may read the 4 hints given below.
Experience
Be sure the professional is seasoned. Your specialist can cope with a variety of conditions, such as dockworker strikers and port shutdowns, just to mention a few. Apart from this, experienced professionals can help you cope with other problems that regularly occur during importing and warehousing. You should know that they have good experience of providing accurate continuous customs bond.
The network of the freight forwarder
You should go with a freight forwarder that has a network in the states. For example, be sure your freight forwarder has links in the foreign country where you intend to import from. You might have problems working with OFFs or customs brokers who don’t have strong connections in the customs department.
Services
The freight forwarder should provide you with the services that are required. You should learn if they provide air transport or sea shipping. Some providers may provide help with different items, such as warehousing and distribution. And finally, recheck whether they have a good track record of helping clients with continuous customs bond or single entry bond.
Good References
References are important regardless of which sort of service you've been on the lookout for. It's not restricted to cargo forwarding. You might want to appear somewhere else if no one is about to praise an expert.
Do you locate the references? The first technique is to visit this supplier's website to find some references page. So as to discover more about them you may contact those customers. You talk to their previous customers and ask about their experience regarding obtaining customs bonds CA and other paperwork procedures.
The other way of getting any type of customs bond is to file an application for it with the help of a surety company that is licensed by the Treasury Department of the United States. Customs bonds are important documents that you would not want any errors so make sure you work with experts in the field.
How to select the best customs broker for customs bonds
The US policies for imports and exports change very frequently and that’s why businesses need to always vigilant about these updates. Therefore, they need experienced intermediaries who can facilitate these processes. Customs brokers and freight forwarders are key partners for any businesses that regularly involve in international transactions of goods and products. They help US importers to fulfill all legal requirements for importing goods from foreign countries such as customs bonds NJ.
The partnership with these professionals adds value to companies and helps them stay in compliance with customs regulations and guidelines. There are many advantages of working with an experienced, licensed, and knowledgeable customs broker.
Finding the right customs broker for bonds
Customs brokers are professionals who handle imports and exports between countries that have imposed customs restrictions and regulations. They handle transportation of both perishable and non-perishable goods. They act as intermediary between the government and importers/exporters. Here are a few tips for you to hire the best brokers or brokerage firm for 301 customs bond.
How can they help you?
Customs brokers are trained and licensed professionals who help importers deal with logistics and legal work that involve in international transaction of goods through ocean. They work on behalf of importers and help them with preparing documents, calculating customs duties and filing 301 customs bond application. They assist their clients regarding the safe clearance of goods through various customs points and agencies.
Experience
You should always look for brokers who have vast experience in the industry. Make sure you work with brokers who have a good network with insurance professionals and have links with some customs agents. Make sure your broker possesses experience in clearing your specific types of goods which can be foods, textiles, or machines.
Local reputation
Don't get fooled by scintillating advertisements and marketing materials because they never tell the whole story about a broker or freight forwarder. When you need to buy customs bonds NJ, you should select brokers who a positive local reputation and a good stock of customer testimonials and references.
The given tips might help you find the right customs brokers. However, a surety company that is licensed by the US Department of the Treasury can help you get more information about different types of customs bonds and the process of applying for those bonds.
Do you want to purchase OTI Bonds in New York?
There are numerous companies in the US that offer reliable and efficient packaging and freight forwarding services. Most of them keep working on their process to lend wings to their shipping service. While these companies deal with thousands of packages from different locations across the world, they also need to keep in mind the rules and regulations. Of course, OTI Bonds NY is a part of these regulations.
The Federal Maritime Commission (FMC) requires all ocean freight forwarders and non-vessel operating common carriers to obtain a license under the Shipping Act of 1984. The purpose of this act was to make the process of common ocean carriage more impartial and to reduce the intervention of government authorities.
Any OFF agency in the US that offers the services mentioned in the below points is required to obtain a valid license from FMC and submit proof of financial responsibilities in forms of OTI bonds.
- Manages cargo movement to international destinations.
- Dispatches shipments from the United States via common carriers and books or otherwise arranges space for those shipments on behalf of shippers.
- Handles the documentation and performs related activities pertaining to those shipments.
If you’re an importer based in the US, you may be already familiar with customs bonds CA. Importers who import commercial goods that valued above $2,500 are required by the Customs and Border Protection (CBP) to purchase appropriate size of customs bonds.
Customs brokers and insurance agencies arranges bond placement on behalf of importers. If you’re looking for reliable and experienced insurance professionals to obtain OTI Bonds, CBI Customs Bonds & Insurance Inc can help you obtain one at the most competitive rates in the market.
We partner with you and deliver exceptional customer experience, highly committed service, and advanced automation. Our goal is to make client’s job easier and more efficient, resulting in your increased profitability and improved performance.
If you’re seeking to become a licensed ocean transportation intermediary and ensure you comply with all federal rules and regulations, you can consult with our surety bond experts. We are dedicated to giving the most pertinent information and solutions for your bond needs.
Why Do Freight Forwarders Need OTI Bonds in the US?
It’s never easy to move products, raw materials, and machines in other countries around the world without the help of experts. Businesses who conduct business internationally rely on freight forwarders and ocean carriers to move their items feasibly from one part of the land to another. The U.S. Customs and Border Protection observe and control the importing and exporting in the US. The federal agency requires all importing entities to obtain necessary customs bond.
On the other hand, freight forwarders and non-vessel operating common carriers are required to obtain OTI Bonds SC to meet the rules and regulations of the Federal Maritime Commission (FMC). Any kind of business that does require transacting merchandise internationally might be aware of the importance of having an efficient freight forwarding partner by their side.
What are Customs Bonds?
America is the largest importing country in the world. However, the process of importing is nothing short of intricacies, especially for newbies. Business that import frequently might be aware of the level of paperwork needed such as Bill of Landing, Commercial Invoice, and Arrival Notice. Customs bonds are quite different from other types of bonds.
A customs bond is like an insurance policy that guarantees payment of all duties and fees related to a shipment. As an importer, you can purchase a bond from a surety company or customs broker, who guarantees the US government that all corresponding shipment fees and taxes will be paid for. If the importer fails to comply with federal regulations, the bonding company will be responsible for compensation.
OTI Bonds
All international freight forwarders and non-vessel operating ocean carriers are required to obtain OTI bonds to operate as legitimate ocean transportation intermediaries. These bonds are also similar to customs bonds that warrant obeying all contracts with shippers and carriers.
So you belongs to freight forwarding fraternity, you may be already aware of the importance of being licensed. If you wish to become a licensed ocean transport intermediary, you will need post necessary bond.
OTI bonds act as proper proof of financial responsibility. If you don’t possess adequate bond, you may be subjected to some heavy fines by the FMC and your license can be revoked by the authorities if you found noncompliant at any stage of carrying.
Get the Right OTI and Customs Bond You May Need
We may not be the secret agents but we can get you the 301 customs bond you may need. CBI’s customs professionals work with multiple sureties and provide thousands of bonds to a hundreds of registered companies across the nation and beyond. We provide assistance in getting the right OTI Bonds CA that you may as an aspiring freight forwarder or common carrier need.
We deliver services to IFFs, NVOCCs, and FMCSAs and guide them in their licensing requirements. We specialize in providing different types of customs bonds that include Single Entry Bond, Continuous Bond, Custodian of Bonded Merchandise, and other miscellaneous specialty bonds.
A bond is a foundation for every registered operator’s license such as logistic companies and non-vessel ocean common carriers.
What do we do?
We are basically insurance experts catering to customs brokers, international freight forwarders and importing companies since 1981. As a bond assist, we combine your bond and liability policy that will tax you and also ensures your bond underwriting is easy. We offer a wide variety of specific customs bonds all of which we’d happy to handle for you.
How can we help customs brokers?
If you’re a customs broker, we can get you working online to issue bonds quickly and competitively. We can also handle any different OTI bonds you may need. Our team is dedicated to helping in guiding and providing relevant information on crucial things like how to fill CBP 301 customs bond form correctly and how to become licensed NVOCC in American. We years of experience in the bucket, CBI’s competent agents are here to help you.
Why choose us over others?
The best part about getting the bond related services from our company is we do everything for you. We handle entire process from guiding you about the bond cost, responsibilities, and local regulations to filling and submitting the bond application correctly.
The Federal Maritime Commission (FMC) directs ocean and non-vessel freight operators. It requires all Ocean Transport Intermediaries (OTIs) to file an appropriate surety bond as per its official guidelines. If you’re a NVOCC or Ocean Freight Forwarder, you can contact us for necessary OTI bonds.
Why Do Freight Forwarders and NVOCCs Need OTI Bonds?
Ocean Freight Forwarders or OFFs and Non-Vessel Operating Common Carriers or NVOCCs are essential contributors in international trading, responsible for making the process quick and safe. These terms are coined very often in ocean freight and cargo shipping business. These become the best source for both importers and exporters in their distribution needs.
But there is a certain difference between OFFs and NVOCCs. A freight forwarding company usually gives consultation and advice to its clients while NVOCCs provide services that include carriage, consolidation, storage, handling, packing, and distribution of goods. Both require obtaining OTI Bonds CA for respective reasons.
Because freight forwarding mostly entails processing goods from part of the world to another, they have the onus to ensure cargo departs safely and arrives at the right location at the right time. They require proper experience, training, knowledge, and skills to make this work feasible. Purchasing customs surety bond is a crucial part of making sure they comply with customs and federal laws and regulations.
NVOCCs as the name suggests, are carriers of shipment and provide service under their own bill of landing (BOL). They are also shipment consolidators and when having a proper license they can offer a variety of shipping services to a wide range of customers worldwide. To ensure they adhere to local laws and do the job without defaults, they also require a customs surety bond to protect the rights of clients.
OTI bonds can be obtained by filling Form FMC-48 or FMC-69 as per the requirement of the Federal Maritime Commission (FMC). These are necessary for licensed ocean intermediaries operating in the United States.
The reason why OFFs and NVOCCs require buying OTI Bonds is simple and apparent, to ensure compliance with FMC regulations and the Ocean Shipping Reform Act. As part of this NVOCC certification and licensing process, companies are assessed on their experience and ability to successfully provide OTI services that are in compliance with principles based on the Shipping Act and Federal Maritime Commission.
The OTI bond amount is normally $50,000 for OFFs and $75,000 for NVOCCs based in the US. You may contact our insurance professionals to know the exact amount of OTI bonds. We can give you quick assistance and provide you service at the best rates in the market.
